TMC NEWS

TMCNET eNEWSLETTER SIGNUP

Best's Special Report: U.S. Property/Casualty Industry's Net Income Jumped 70% in 2018

[March 15, 2019]

Best's Special Report: U.S. Property/Casualty Industry's Net Income Jumped 70% in 2018

The U.S. property/casualty (P/C) industry's net income improved
significantly to $61.4 billion in 2018, a $25.2 billion increase from
the prior year, aided by a reduction in catastrophe losses and an
increase in net investment income. These preliminary results are
detailed in a new Best's Special Report, titled, "First Look:
2018 Property/Casualty Financial Results," and the data is derived from
companies' 2018 annual statutory statements received as of Mar. 11,
2019, representing an estimated 96% of the total P/C industry's net
premiums written.

The reportstates that increases in premiums written and earned
outpaced the increase in incurred losses and expenses, and as a result,
the P/C industry's combined ratio for 2018 improved 4.4 points to 99.3
from 103.7 in 2017. AM Best estimates that catastrophe losses accounted
for 5.9 points on the 2018 combined ratio, down from an stimated 10.1
points in the prior year. The improvement in net income and $6.2 billion
in additional contributed capital was more than countered by a $99.7
billion decline in unrealized gains and $5.5 billion in additional
stockholder dividends, resulting in industry surplus declining 0.6% to
$741.0 billion from the end of 2017.